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The Mobile Payments Market Size is estimated to grow by USD 143.85 billion, at a CAGR of 28.22% between 2023 and 2028. Market growth hinges on several factors, such as the increasing volume of online transactions, expanding deployment in emerging economies, and the benefits associated with mobile payments. The rise in online transactions reflects evolving consumer behavior towards digital commerce, driving demand for secure and convenient payment solutions. Simultaneously, the expansion into emerging economies presents significant growth opportunities by tapping into underserved markets and increasing financial inclusion. Moreover, the advantages offered by mobile payments, such as flexibility and accessibility, further bolster market expansion. These trends underscore a transformative shift in payment ecosystems, where technological advancements and changing consumer preferences converge to shape the future of financial transactions globally.
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The market continues to evolve with innovations like QR-based, text-based, and sound wave-based mobile payments reshaping online digital payments. These methods utilize encrypted information for secure transactions, leveraging smartphone ownership and high-speed mobile networks to facilitate contactless payments and enhance internet usage in online commerce. Mobile payment applications integrate AI for fraud detection to ensure secure digital transactions amid the shift towards digitalization across E-commerce businesses. Generation Z's preference for convenience drives the adoption of loyalty points, rewards, and redemption points through mobile payment platforms, promoting seamless transactions and customer engagement. As technologies advance, the mobile payment sector continues to innovate, offering efficient payment services that cater to diverse consumer needs while advancing the landscape of financial transactions globally. E commerce businesses are leveraging QR based, text based, and sound waves technologies, integrating artificial intelligence and high speed mobile networks to facilitate cashless transactions, appealing particularly to Generation Z.
The rising number of online transactions is a major market driver. Online transactions are becoming more popular among consumers because of their ease, speed, and convenience. Mobile devices, especially smartphones, are widely used for online transactions. Digital wallets are the most preferred mode of payment because of their easy registration, robust payment processing capabilities, and user-friendly dashboard.
Further, mobile payments are gaining popularity due to the increasing use of mobile devices and wearables. Retailers are adopting NFC POS terminals to facilitate the payments and enhance their marketing efforts. This streamlined process helps generate more revenue for retailers. The adoption of contactless EMV cards will likely encourage the implementation of NFC POS terminals. Faster checkouts, effective information management, and secure payments contribute to the growth of the global market.
The growing emergence of mobile apps for shopping transactions is a primary market trend. In recent times, online shopping transactions have risen higher in mobile apps than on websites due to the increasing penetration of smart devices in the market. Therefore, to capture these opportunities, companies are trying to switch from websites to app-only services. Mobile payments in countries such as India have been growing faster as more consumers and businesses adopted during the pandemic.
In addition, compared with developed countries, switching to app-only services can turn into a major failure for e-commerce providers, as many developing countries such as Indonesia and Thailand still face problems with Internet connectivity, which restricts customers from making online purchases. In January 2020, Mastercard Inc. launched a new augmented reality (AR) app that allows cardholders to see, explore, and access the benefits of their Mastercard Inc. The industry-first card benefits app delivers a photorealistic AR experience that transports users to a 360-degree virtual environment. Hence, the market is expected to grow positively during the forecast period. These factors are highly impacting the market.
Privacy and security concerns are major challenges faced by the market. Payment service providers use online cookies to gather personal data and information on customers so that they can customize their advertising messages to target key audiences. The indiscriminate use of cookies can infringe on customer privacy, while location-based online services have also raised privacy concerns because these can reveal the geographical location of the customer. In general, online retailers may collect a large volume of data, including details such as addresses, credit card information, passwords, and other credentials.
However, many companies also collect a large volume of data through cookies and other methods to determine customer demographics and ensure better target advertising for future transactions. Confidential information, including those related to consumer addresses and credit card information, poses risks because m-commerce involves monetary transitions in real time. Moreover, data theft can lead to financial losses for customers. These factors can adversely affect the online experience of customers and hinder the potential growth of the market during the forecast period.
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The market share growth by the remote payment segment will be significant during the forecast period. The introduction of mobile payment gateways, such as Apple Inc. has simplified the process of paying bills.
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The remote payment segment was valued at USD 16.35 billion in 2018. Customers no longer need to carry credit or debit cards. Several retail outlets make use of POS terminals for payment of the purchases made by consumers. A POS terminal is a portable device that can accept and process payments over Wi-Fi and print out receipts. One of the main reasons for big players to offer near-field communication (NFC)-based mobile payment options is the high-security features that prevent the consumer and retailer from accessing card information or security code illegitimately. Such, benefits are the reasons behind the segment growth during the forecast period.
Mobile payment gateways like Apple Inc. have simplified bill payments without the need for credit or debit cards. Retail outlets use POS terminals to process payments over Wi-Fi and print receipts. The high security features of NFC-based payments prevent access to card information or security codes by unauthorized parties. Users save financial data on their phones and make transactions by bringing their phone closer to the vendor's contactless payment-capable POS system, then authenticate using biometrics or passwords. The increased use of mobile devices and wearables has popularized payments, and many retailers adopt NFC POS terminals to streamline operations and boost revenue. Contactless EMV cards will encourage more use of NFC POS terminals. Faster checkouts, the adoption of EMV cards, effective information management, and secure payments are driving factors in the growth of the global market.
APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The APAC market is expected to witness high growth, mainly due to rapid urbanization and the increasing penetration of Internet services. The growing adoption of various mobile payment methods, such as wallets and payment gateways, is propelling the growth of the regional market. Semi-closed wallets do not have the option of withdrawal and redemption. They are linked to bank accounts and involve transactions through payment gateways. This helps in the growth of the market. Additionally, the penetration of mobile phones is higher in developed countries, when compared with developing countries, which is accelerating market growth. The governments of various countries in the region have been taking initiatives to promote mobile payments. For instance, the Government of India has been undertaking several measures to promote and encourage payments in the country. As a part of the Digital India campaign, the government is aiming to create a digitally empowered economy. Thus, as per the aforementioned factors, the regional market will grow significantly during the forecast period.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. One of the major companies in the market include:
Mahindra and Mahindra Ltd. - The company offers mobile payments under multiple segments, including the automotive sector, and financial services among others with a high focus on the automotive sector.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is flourishing with the rapid evolution of the mobile payment industry and diverse mobile payment systems. Emerging technologies like the Artificial General Intelligence software stack are transforming payment systems worldwide. Innovations such as Radio frequency identification and NFC payment transactions are reshaping traditional approaches to debit or credit cards and mobile wallets, offering contactless and convenient payment options. Sound wave technology is also gaining traction for encrypted payment data transmission, reducing implementation costs while enhancing technology's convenience. Mobile payments encompass various modes, including mobile wallets/cards, mobile money, and biometric authentication, supporting e-commerce platforms and wearable payment technology. This shift reflects the growing mobile commerce trend, facilitating transactions via SMS, WAP, and NFC, surpassing cash in popularity. As banking applications integrate these advancements, the future promises seamless, secure mobile payment solutions catering to diverse consumer needs.
Moreover, the landscape of mobile payment is rapidly advancing with technologies such as QR-based, text-based, and sound wave solutions transforming business transactions and e-commerce. These innovations cater to the growing smartphone market, particularly on Android OS devices, where smartphone manufacturers focus on integrating secure Android-based smartphones. Concerns over security issues and high-profile data breaches drive advancements in mobile-centric strategies and mobile banking to enhance mobile payment experiences. Fintech companies and banks collaborate on cashless transactions and domestic and foreign payment innovations, benefiting both brick-and-mortar stores and online retail. QR codes and Near Field Communication (NFC) enable contactless payment methods, fostering customer loyalty programs and enhancing customer engagement. Amidst AI investments for fraudulent activities prevention, financial inclusion strategies and awareness campaigns promote adoption. Across industries like travel and tourism, restaurants, and medical and healthcare, mobile payments streamline transactions, integrating data analysis and customer engagement solutions for seamless experiences in the retail and e-commerce industry and beyond.
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Market Scope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 28.22% |
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Market growth 2024-2028 |
USD 143.85 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
21.17 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 45% |
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Key countries |
China, US, India, UK, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., American Express Co., Ant Group, Apple Inc., JPMorgan Chase and Co., Mahindra and Mahindra Ltd., Mastercard Inc., MoneyGram Payment Systems Inc., NASPERS Ltd., One97 Communications Ltd., PayPal Holdings Inc., Samsung Electronics Co. Ltd., Tencent Holdings Ltd., Visa Inc., and Vodafone Group Plc |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Location
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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